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Brazil Consumer Confidence Collapses To Lowest. Ever.
It appears all the emerging/emerged economies of the world that are supposed to be the dynamic growth engines to lead the world to escape velocity are, well, not. Perhaps no better example is Brazil where hyper-growth expectations have disappeared into a black hole as business and consumer confidence collapsed this week to historical lows. As Goldman noted, "This poses major headwinds for private consumption and overall activity in the coming months."
As Goldman summarizes:
According to the monthly FGV Index, consumer confidence (CC) posted a large 4.9% mom sa decline in February, adding to the even larger 6.7% mom sa decline recorded in January. The overall consumer confidence index is now at its lowest level since the index started to be reported in September 2005. Furthermore, consumer confidence is currently 34% below the April 2012 peak and 26% below the average of the last five years.
The index measuring current conditions declined by a very large 7.0% mom sa in February (following a 8.6% mom sa decline in Jan) and the index measuring expectations declined 4.2% mom sa (-6.2% mom sa in Jan). The two sub-indices are now below the levels sees during the 2008-09 global economic and financial crisis and also at historical lows (for the series that started in September 2005).
In addition, business confidence in the construction sector declined 6.9% mom sa February (-27.3% yoy) adding to the 6.2% mom sa drop recorded in January. The headline index is now below the 100 threshold since October and at the lowest level since the index started to be reported (July 2010). The index measuring current conditions declined a very large 9.7% mom sa in February (-32.1% yoy) and the index measuring expectations declined 4.6% mom sa (-23.3% yoy).
Finally, as reported yesterday, business confidence in the industrial sector declining a sizeable 3.1% mom sa in February and is currently 22% below the January 2013 peak. The index measuring current conditions declined 1.7% mom sa in February and the index measuring expectations fell a large 4.8% mom sa.
Business and consumer confidence remains very depressed given the anticipation of policy tightening, rising inflation, rising taxes, rising interest rates, significant increases in utility and transportation tariffs, deteriorating labor market conditions, and more exigent credit conditions. This poses major headwinds for private consumption and overall activity in the coming months.
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But it's not just Brazil...
China ugly...
And Russian even worse...
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Perhaps because they have no water to drink?
Mosquito shortage.
When I was a little kid, I asked my mother why god made mosquitoes.
Still waiting for an answer.
They finally caught DOWN to the same levels that the US has spent the last 5 years to rise UP to.
They need some new Birth/Death adjustments or Seasonal adjustments....this just doesn't fit the meme
No reason. California real estate is red hot again and they have no water too. Soon flushing toilets in $1M+ condos with bottled water.
Bullish for Tonga and the Baltic Dry.
Maybe the Baltic dry should start shipping cases of bottled water.
Then it would be the Baltic Wet.
Who needs consumer confidence when you got big brazlian booties on the beach? the quad B
Or beautiful Asian girls.
You can't flush the toilet with Asian girls, even ugly ones, can you?
We prefer the term "soft landing"
I've given her all we got Captain, we simply can't consume any more........
When their currency is TP it will be welcome in Venezuela.
But I thought that the World Cup and the Olympics would solve all that, no? Dilma?
Holy shit..... It's almost as if 'globalization' doesn't really work..
IMAGINE that.
"The first matrix I designed was quite naturally perfect. It was a work of art. Flawless. Sublime. A triumph only equaled by its monumental failure."
I noticed Zero Hedge reads are in the 5,000 range. We're doing a great job of crushing the veracity of his publication. When we're down to a few hundred, then at least we know doom can't be used as bait for ad clicks, maybe we're in the middle innings of a bull. Then when Zero Hedge switches to a stock picking subscription service, we will be exiting stocks.
Doomer Porn.
And we're number one going on five years now...
I'm so sick of the Vlad and Adolf for Co-World Emperor crowd that it's about to become 4,999.
But, on another front, what happened to the great "BRICS shall inherit the Earth" thingy?
Brazil down. Russia down. China down.
Guess the BRICS glee club will have to rely on South Africa and India to power their Newerest and Improviest Ordo Seclorum.
"The whole world united shall not prevail against her."
Well, those countries are still accumulating gold, and are still funding their bank, and still more solvent than we are. Russia is ahead of schedule to put up a system to replace SWIFT, and the way it will all finish up is probably a massive nuclear war. So WTF? Go enjoy a drink someplace.
When the bough breaks, all cradles will fall.
I'd rather work on sauve qui peut rather than sit around getting drunk and moaning nous sommes trahis.
I'm not moaning, I'm just (burp) regrouping. Let your hair down sometimes tara. Everything will be fine.
Go enjoy a drink someplace.
Funny you should say that. But seriously, you are spot on. Most of the western world banking system includes IMF controlled SA countries. They may be part of BRICS but they are still part of the octopus. Until they march on their capitol and hang a few nothing will change until the SHTF. Then from the ashes...
"what happened to the great "BRICS shall inherit the Earth" thingy? Brazil down. Russia down. China down. Guess the BRICS glee club will have to rely on South Africa and India to power their Newerest and Improviest Ordo Seclorum. "The whole world united shall not prevail against her."
I bet you really are all about instant gratification aren't you?
Well, I must admit that your handle accurately reflects the quality of your posts and truly does you justice, "Tarabel".
Maybe its all BULLSHIT. Stop the fucking bus and let me off. Who ever thought Brazil was anywhere near big enough to build up like they did? I'm sure the money was borrowed from the cocksuckers in New York.
Nope, borrowed from their future generations is more like it.
Actually, a lot of it was borrowed from entities in NYC. Whereupon a small sliver of Brazilian society stole vast portions of it..... hard.
For example:https://www.moodys.com/research/Moodys-downgrades-Petrobras-long-term-de...
Fucking idiot gringos. They'll never learn......
Little things have an effect on confidence.
Little things like your largest city running COMPLETELY out of water...
Russia is more than capable being the world's number one supplier of clean water. Those supertankers will soon be carrying water instead of oil to some spots around the world.
Yeahbut... São Paulo has just enjoyed (suffered?) heavy rainfall/floods after its worst drought in 80 years, according to RT.com this morning. So maybe its drought is coming to an end.
They'll do better once they get on the BRICS system. The US has always pulled the rug out from under any country that's about to get traction. Still can't wait to see the faces of dumb US voters when they have to pay triple for imported goods, due to loss of the dollar as the reserve currency. Probably will happen about three to four months into Obama's third term.
BRICS is a joke. I used to think it would be the end of USD as reserve, but there is no way money is going to run to BRICS for safety.
BRICS is not a joke.
Mercosur is not a joke.
Joke is what we tried to impose the FTAA (a type of "Mexico / US / Canada") and free trade with Europe.
This is a joke!
Dude, most of the staff here recognizes a Troll only with the first sentence you write!
Most are in the network for many years.
Kkkkkkkkkkkkkkkkkkkkkkkkk!
Googleficado.... de novo.....
I agree in part.
When you are on a highway at 120 miles per hour and it starts raining, what do you do?
- Decrease the speed.
The average Brazilian bought many homes and vehicles, is when you pay off your debts, stabilize finances.
Who feels the hit first are the multinationals that produce vehicles after the banks.
Complaints always start with these two.
Not always the multinational companies "feel" is what the Brazilian people are doing.
Be very careful with this kind of "research" and information.
The hole is lower.
hehe.
They don't need to consume foreign goods. They have each other.
Take advantage of the weakened Brazilian Real currency and go see the Watermelon woman down there.
Every country is in a huge downturn. Just some haven't realized it yet.
Because wide spread corruption evicerates confidence in any system... This is the common thread of all 3 countries!
Those could be charts of the US for the same reason.
They have to change the name from "emerging markets" to "submerging markets."
Baile Funk confidence in the favella? Thru the roof!
bej!